Donald Trump has resumed the path of protectionism with a new wave of tariffs, mainly targeting China, but also products from Europe and other developed and emerging economies, including Chile. His goal: to reduce the trade deficit, protect local industry, and reinforce the narrative of economic sovereignty. However, the immediate effect has been quite different: markets reacted with tension and high volatility.
Equities were the first to feel the impact. The S&P 500 fell by nearly 6.0% and the Nasdaq by 5.8% in a single session, reflecting fears of disruptions in global supply chains, rising costs, and slower economic growth. Technology and industrial sectors were the hardest hit, given their international exposure and sensitivity to foreign trade.
In fixed income, the adjustment was also significant. The 10-year Treasury yields climbed to 4.50%, fueled by inflation concerns stemming from higher import costs. This led to price declines in medium- and long-term bonds, both sovereign and corporate. This environment reinforces the need for active management, careful duration selection, and diversification across credit and currencies.
Alternative assets, meanwhile, have not shown immediate movements but face a landscape of increased investor caution. However, instruments such as private equity, private debt, and infrastructure could benefit from volatility, offering opportunities that are less correlated with traditional assets.
On Wednesday, April 9, markets found some relief after the White House announced a 90-day delay in the implementation of most tariffs — except for the tariffs on China, which will rise to 125%. This tactical signal triggered an immediate rebound: the S&P 500 recovered almost 8.0% and the Nasdaq 9.0%, highlighting the market’s sensitivity to every shift in political discourse.
While the rebound was strong, uncertainty remains. This new cycle demands flexibility and strategy. Defensive sectors, companies with strong domestic presence, and real assets could offer greater resilience. Well-diversified portfolios with global exposure, solid alternative investments, and active fixed income management will be key to navigating what lies ahead.
Investing is not about guessing the next headline — it’s about building a strategy capable of withstanding the cycle. And that starts with vision, discipline, and a long-term perspective.